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Einhorn: If you believe in the Trump story, here's what you should really be investing in

Greenlight Capital's David Einhorn said Tuesday that President Donald Trump's focus on job creation and other economic factors are positive for personal income.

"If you have high levels of personal income, I think you're going to wind up with high levels of demand for new cars and, also, better-than-expected performance in the credit subsidiaries," he said on CNBC's "Halftime Report" on Tuesday.

With the already low unemployment rate, Einhorn explained that more jobs will lead to a possible labor shortage, which translates to higher wages. He added that interest income will swell as the Federal Reserve raises its benchmark rate.

While some investors are fixated on infrastructure stocks, Einhorn said, "If you really believe the Trump story, you should be investing in consumer durables like autos."

On Tuesday morning, Einhorn's fund sent a letter to General Motors, urging the company to split its common stock into share classes, a move Greenlight said would "unlock value" and "improve its financial flexibility."

The automaker's board "thoroughly analyzed and rejected" the proposal, saying it would create "unacceptable risks and is not in best interests of shareholders." GM said risks include the potential loss of the automaker's investment grade credit rating.

Greenlight has a 0.88 percent stake in GM, about $457 million, as of Dec. 31, according to FactSet. Although the fund's plan was rejected, Einhorn said he and his firm continue to support GM CEO Mary Barra.

Earlier this year, Einhorn said in a letter to clients that his fund is "long a variety oflow multiple, tax-paying, U.S. value stocks" in anticipation of Trump's agenda. The closely followed hedge fund manager said Tuesday that he is sticking with those investments.

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Watch: GM responds to Einhorn's plan